Earlier quoted context omitted.
Moore's Law is Dead (chip analyst YouTuber) believes a $300 bill of materials and $600, maybe even $450 for the lower SKU. The CPU and GPU in this are last generation, and he believes Valve got a bulk discount on unsold RDNA3 mobile GPUs. They did something similar with the Steam Deck riding off a Magic Leap custom design. People predicted that would be pricey too but launched with (and still has) a $399 model.
300$ BOM sounds incredibly low to me, especially now with the exploding prices for storage and RAM. Maybe they have already stocked up on it, but I doubt it. The huge heat sink also cannot be cheap. Then of course there's the whole tariff uncertainty. The lower SKUs for Steam Deck are sold pretty much with zero margin or even at a loss, as Newell said this was a strategic decision to enter the mobile gaming market. H…
Consider what the Steam Machine requires sacrificing:
- fewer USB-C connectors
- larger physical footprint
- can't buy and take it home today
It's hard to do an apples-to-apples comparison between the chips, but where one is better than the other on some dimension, it's offset by some other. They're approximately comparable.
Now, what's the price of the Mac Mini? $598.92
When people are talking about price points that have a higher margin than even Apple's devices have, you have to stop and consider whether people who are tossing around numbers like $750 with a straight face are actually trying to be rational but failing or they are just totally yielding to getting caught up in the hype.